CUSTOMER SUCCESS STORY

Automate Cash Posting with RDC 2.0. and Mobile RDC for Remote Deposits

A $55 Billion Wholesale Company

Learn how a $55.3 Billion wholesale company leveraged mobile RDC to achieve 85+% automation for processing remote deposit payments across 72 operating companies

CHAPTER 01

Introduction

RDC 2.0. AND MOBILE RDC TO AUTOMATE CASH APPLICATION ACROSS 72 OPERATING COMPANIES

“For the first time in our history, we are able to use complete remittance information for accurate, straight-through cash application!”

Senior Director, Business Technology, Finance,
A $55 Billion Wholesale Company

CHAPTER 02

Key Challenges with Check Processing

  • Decentralized cash posting process for each of the 72 business units
  • Multiple deposits accounts with customers paying for each business units using different checks
  • Cash posting without using remittance information
  • Internal auto-match algorithms were used to match remittances using payment amount resulting in low on-invoice hit rate of 30-40%
  • Team was unable to post cash the same day
  • Multiple checks scanning for depositing checks and research and retention purposes
  • Cash posting was inaccurate; lots of claims were not processed accurately and the team spent 50% of the time correcting the A/R
  • Deduction coding was manual as SAP setup had minimum mapping table
CHAPTER 03

Results Across the Board

Results Across the Board

CHAPTER 04

Automate Cash Posting with RDC 2.0

Major Challenges with Processing Checks (NET Deposit)

Major Challenges with Processing Checks

 

  • Low cash application hit-rate: 30-40%
  • Check and remittance scanned separately
  • Remittance information not used – algorithms resulted in misapplication
  • Separate payments for separate operating companies

 

Remote Deposit Capture 2.0. – How it Works

Instead of scanning and processing checks manually

 

Here is how RDC 2.0. works:

Step 1. Scanning:

  • Scan checks and remittances together in one batch.
  • Data captured with high accuracy due to inbuilt Magnetic strip based MICR capture and OCR based data capture.

Step 2. Transmission of enriched file

  • Electronic index file for internal cash application auto-created
  • Enriched electronic file in bank-compatible ICL (Image Cash Letter) format auto-created to be forwarded to bank.

Step 3. Real-time cash application

  • Electronic index file auto-matched with scanned remittance information
  • Open A/R invoice details auto-pulled from ERP
  • Payment details individually auto-linked open A/R line-items
  • Cash auto-posted in the ERP
CHAPTER 05

Automate Cash Posting for Remote Deposits with Mobile RDC

Major Challenges with Remote Deposits

Major Challenges with Remote Deposits

 

  • Inability to use remittance information for cash application
  • Multiple payments for different operating companies and for different banks
  • Impact: Slow cash application and high value of unapplied cash despite already being collected

 

Mobile Remote Deposit Capture – How it Works

Instead of struggling to match the payments to the respected invoices in ERP without using the remittance information, the wholesale company decided to leverage Mobile Remote Deposit Capture technology to collect payments as and when their delivery executives delivered goods. Here is how this technology works:

 

Mobile Remote Deposit Capture

 

CHAPTER 06

About HighRadius

HighRadius is a Fintech enterprise Software-as-a-Service (SaaS) company which leverages Artificial Intelligence-based Autonomous Systems to help companies automate Accounts Receivable and Treasury processes.

The HighRadius® Integrated Receivables platform reduces cycle times in your order-to-cash process through automation of receivables and payments processes across credit, electronic billing and payment processing, cash application, deductions, and collections. HighRadius® Treasury Management Applications help teams achieve touch-less cash management, accurate cash forecasting, and seamless bank reconciliation. Powered by the RivanaTM – the Artificial Intelligence Engine Purpose-Built for Finance and the FreedaTM Digital Assistant, HighRadius enables teams to leverage machine learning to predict future outcomes and automate routine labor-intensive tasks. The radiusOneTM B2B Collaboration Network allows suppliers to digitally connect with buyers, closing the loop from supplier receivable processes to buyer payable processes. HighRadius solutions have a proven track record of increasing operational efficiency through automation, optimizing cash flow, reducing days sales outstanding (DSO) and bad debt, so that companies may achieve strong ROI in just a few months. To learn more, please visit www.highradius.com.

IR Diagram